Thai government advises farmers not to raise rice production

Bangkok (VNA) – The Thai government has
recommended farmers not to increase rice production despite rising prices.

Data from the Thai Ministry of Commerce show
that prices of Thai rice have risen significantly, especially Hom Mali rice
which is now sold at 17,000 THB (543 USD) per tonne – the highest in five year.

The increase in rice prices can be attributed to
a lower supply, following recent natural disasters, amid increasing export
demand.

The country shipped 1.2 million tonnes of milled
rice, up 16.5 percent year on year, worth 578 million USD in January.

The Thai Rice Exporters Association (TREA)
forecasts the export volume at 9.5 million tonnes of milled rice this year,
easing from a record high of 11.6 million tonnes in 2017 due to the strong THB.

TREA President Charoen Laothammatas also
attributed the prediction to low rice stockpiles and a decline in the Hom Mali
rice output due to unfavourable weather conditions.

The Agriculture Ministry forecasts rice
production for the 2018 season at 30 million tonnes of paddy rice or 22-23
million tonnes of milled rice, similar to last season. Milled Hom Mali rice
output is forecast at about 7 million tonnes.-VNA